Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/232816
Authors: 
Deiana, Claudio
Geraci, Andrea
Mazzarella, Gianluca
Sabatini, Fabio
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14064
Abstract: 
We study the impact of a COVID-19 relief program on compliance with confinement measures in Italy, the early epicenter of the pandemic. We match information on the allocation of funds across Italian municipalities with data tracking citizens' movements drawn from mobile devices and vehicles' navigation systems, anonymized and aggregated at the municipality level. To assess the role of the program, we exploit a sharp kink schedule in the allocation of funds as a function of past income differentials that generated random treatment assignment in a neighborhood of the threshold point. We find robust evidence that, after the introduction of the program, mobility decreased with the amount of transfers. The impact is economically sizeable and resists bandwidth changes, with stronger effects holding in the proximity of the cut-off and the coefficient stabilizing with distance from the threshold. A battery of placebo tests supports the interpretation of results. Our evidence suggests that authorities could leverage targeted relief programs to nudge compliance with emergency measures at a relatively modest cost.
Subjects: 
Coronavirus pandemic
COVID-19 policy response
lockdown
stay-at-home orders
mobility
compliance
social capital
Regression Kink Design
COVID-19
JEL: 
D12
D83
H51
H31
I12
K40
Document Type: 
Working Paper

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